Small Hydropower Market Size & Share, by Capacity (Up to 1 MW, 1-10 MW); Type (Micro Hydropower, Mini Hydropower); End-user (Commercial, Utility-Scale) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3683
  • Published Date: Apr 13, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Small Hydropower Market size is anticipated to surpass USD 6 Billion by the end of 2035, growing at a CAGR of 3% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of small hydropower was over USD 5 Billion. The rising global population demand for electricity, combined with the growing use of small hydropower in electricity generation, is expected to drive market growth in the coming years. 

 The increasing financial incentives, policy initiatives, and rising investment in hydropower projects across the globe for rural electricity generation are also estimated to drive market growth across the world in the coming years. The installed hydropower electrical capacity worldwide touched about 1400 GW in 2021, exhibiting the largest share of all renewable energy technologies.

The growing need for electricity with the adoption of digital technology in various sectors is further propelling market growth.


Small Hydropower Market
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Small Hydropower Sector: Growth Drivers and Challenges

Growth Drivers

  • Increasing Installation of Small Hydropower Plants to Meet the Need for Electricity – Small hydropower plants are environmentally friendly and require less investment compared to other hydropower. The transmission loss of electricity is also very low with high efficiency and high-capacity factor. The flow of water required is also less and makes them acceptable even in a small water body. All these factors are estimated to propel the market growth in the coming years. As per the estimations, about 26 small hydropower with varied capacities were installed across India alone by the end of 2021.
  • Rising Demand for Clean Energy Generation Owing to Environmental Pollution – The escalating emissions of greenhouse gases and rising global carbon footprint are causing huge damage to the climate. The concentration of carbon dioxide released from greenhouse gases was estimated to reach over 400 parts per million in the year 2020 across the world. Hence, the growing preference for renewable energy across the world and the increasing investment in power generation from wind, hydroelectric, bioenergy, and solar sources are predicted to augment the growth of the market.
  •  Surge in the Construction of Hydropower Projects – As per the estimations in 2021, more than 500 dams are newly under construction or planned to construct globally in protected areas such as national parks, natural lands, and reservoirs where indigenous people live. Moreover, the U.S. generated more than 18% of the utility-scale energy in the year 2020 with more than 7% coming from hydropower sources. Such plans & projects depict the upcoming expansion of the small hydropower market value.

Challenges

  • Growing Number of Ecological Issues – The small hydropower is highly sensitive to fluctuations caused by rainfall as the reservoirs lack the presence of plants and the flow of water increases during rain. The constant pressure or water flow is required for this hydropower which is estimated to hamper the market growth.
  • Increasing Prices of Fossil Fuels across the World
  • Lack of Professionals to Operate the Small Hydropower Stations

Small Hydropower Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~3%

Base Year Market Size (2022)

~ USD 5 Billion

Forecast Year Market Size (2035)

~ USD 6 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Small Hydropower Segmentation

Capacity (Up to 1 MW, 1-10 MW)

The 1-10 MW segment in the small hydropower market is predicted to acquire the largest revenue share of about 35% in the year 2035, owing to the increasing demand for the 10 MW capacity of small hydropower. The rising environmental concern across the world about carbon emissions and the increasing focus on the conversion of water energy into electric energy is estimated to drive market segment growth in the near future.

Moreover, the market segment growth is also attributed to the increasing prices of fossil fuels that are used to produce electricity and the development of hydroelectric power in small areas and towns to reduce the expenditure on energy across the globe as per the market analysis.

End-User (Commercial, Utility-Scale)

Small hydropower market from the commercial segment is expected to expand at a substantial rate of around 64% in the year 2035. The increasing concentration on the building of hydropower power plants globally the increasing applications of hydroelectric energy worldwide and the advancements in the designing and construction of hydropower turbines are expected to drive the growth of the market segment in the coming years.

The rising requirement to produce high-capacity electricity owing to increasing industrialization and urbanization is also estimated to have a positive impact on the market segment size.

Our in-depth analysis of the global market includes the following segments:

     Capacity

  • Up to 1 MW
  • 1-10 MW

     Type

  • Micro Hydropower
  • Mini Hydropower

     End-User

  • Commercial
  • Utility-Scale

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Small Hydropower Industry - Regional Synopsis

APAC Market Forecast

The small hydropower market in the Asia Pacific is poised to account for the largest share of 34% by 2035. The increasing demand for sustainable energy production sources to reduce the dependency on other countries for fossil fuels owing to their rising prices is augmenting the investment in small hydropower projects in the region. The rising need for electricity as a result of the increasing population across the region and the growing electrification of villages in China, India, and Vietnam is also attributed to the increasing adoption of hydroelectricity in the APAC region. As per the data by the International Hydropower Association (IHA), 14,446 MW of new hydropower capacity was added in 2019, in East Asia and the Pacific, while 1609 MW capacity was installed in South and Central Asia. 

The increasing government subsidies and incentives for manufacturers and consumers and the number of hydro turbines installed across the coastline of the region to improve the electricity generation capacity in the local regions to meet the demands in rural areas and improve economic growth are also expected to boost the market growth.

North American Market Statistics

The North America small hydropower market is estimated to be the second largest, registering a share of about 27% by 2035. The increasing adoption of hydropower in the United States and Canada, backed by the presence of key market players and the increasing private investment in hydropower with an interest to develop new ways to increase production and decrease the cost of maintenance and installation is estimated to create new opportunities for market growth in the region.

Further, an increase in the adoption of renewable energy to reduce the environmental pollution caused by the emission of greenhouses together with the rising construction of dams and reservoirs is anticipated to rise the demand for market growth. As per research, the U.S. Department of Energy announced USD 8 million in funds to carry out projects that will build the flexibility of the U.S. hydropower fleet, improving electric grid credibility.

Research Nester
Small Hydropower Market Size
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Companies Dominating the Small Hydropower Landscape

top-features-companies
    • Andritz AG
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • LITOSTROJ POWER d.o.o.
    • Toshiba Energy Systems & Solutions Corporation
    • GE Group
    • Siemens AG
    • BHEL (Bharat Heavy Electricals Limited)
    • Kirloskar Brothers Limited
    • Harbin Electric Machinery Company Limited
    • Canyon Hydro
    • Cornell Pump Company

In the News

  • Bharat Heavy Electricals Limited (BHEL) completed the Renovation & Modernization of the Baira Siul Hydro Power Station in Himachal Pradesh, India.
  • Toshiba Energy Systems & Solutions Corporation provided turbine and 30MW bulb hydroelectric generator units for the Hubei Xinji Hydropower Plant in China.

Author Credits:  Dhruv Bhatia


  • Report ID: 3683
  • Published Date: Apr 13, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The increasing demand for clean energy and the rising dependency on hydroelectric power plants working for hydropower are the major factors driving the growth of the market.

The market size of small hydropower is anticipated to attain a CAGR of 3% over the forecast period, i.e., 2023-2035.

The major players in the market are Andritz AG, Litostroj Power d.o.o., Toshiba Energy Systems & Solutions Corporation, GE Group, Siemens AG, Kirloskar Brothers Limited, Harbin Electric Machinery Company Limited, Canyon Hydro, and Cornell Pump Company.

The commercial segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Small Hydropower Market Report Scope
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